Sanseito, a Japanese populist party that draws inspiration from Donald Trump's politics, is gaining support ahead of Sunday's upper house elections, suggesting a notable shift in the country's traditionally centrist landscape.

Now, Sunday’s election results in the upper house of Japan’s parliament threaten “to send shockwaves through U.S. bond markets” once again, cautions Mott Capital Managemen

Shares in Tokyo — where PM Ishiba said he would carry on as leader even as the ruling coalition lost its majority in the upper house election — gained 1% as trading resumed after a public holiday Monday.

Shigeru Ishiba’s ruling Liberal Democratic Party and its junior coalition partner Komeito were short three seats to maintain a majority in Japan's 248-seat upper house in Sunday’s vote.

Japan has worked hard to attract foreigners to boost its sluggish economy but now the perception there are too many has prompted the creation of a new task force, as competition for votes heats up ahead of Sunday’s national election.

Japan’s voters dealt Prime Minister Ishiba Shigeru of the Liberal Democratic Party (LDP) with yet another devastating blow on Sunday, the second electoral loss since coming into office last fall.

Investors will be keeping a close watch on the People’s Bank of China’s decision on its 1-year and 5-year loan prime rates for July, expected later in the day.

Birthed on YouTube spreading Covid-19 conspiracy theories, the party broke into mainstream politics with its populist campaign.